Fed. Sec. L. Rep. P 93,748 Securities and Exchange Commission v. Glenn W. Turner Enterprises, Inc.

This is an appeal from an order, 348 F.Supp. 766 , granting the Securities and Exchange Commission a preliminary injunction. The injunction prohibits offering and selling by appellants of certain of their “Adventures” and “Plans”, and also any withdrawal by appellants of funds from the assets of the corporate defendants other than in the regular course of business. Dare To Be Great, Inc. (Dare), a Florida corporation, is a wholly owned subsidiary of Glenn W. Turner Enterprises, Inc. The individual defendants are, or were, officers, direc tors, or employees of the defendant corporations.

The trial court’s findings, which are fully supported by the record, demonstrate that defendants’ scheme is a gigantic and successful fraud. The question presented is whether the “Adventures” or “Plan” enjoined are “securities” within the meaning of the federal securities laws. Of the five that Dare offers — Adventures I, II, III, and IV, and the $1,000 Plan — the court held that Adventures III and IV and the $1,000 Plan are securities. We affirm.

I. The Adventures and the $1000 Plan — the facade.

The five courses offered by Dare ostensibly involve two elements. In return for his money, the…